Under the cartel, the price is 
Figure 42.2
A. P1.
B. P2.
C. P3.
D. 0.
Answer: A
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Suppose per capita real GDP grows by 3.5% per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double (i.e., increase by 100%)?
A) 10 years B) 35 years C) 20 years D) 3.5 years
The payment of unemployment compensation tends to induce business firms to
A) lay off workers as opposed to lowering sales. B) search for new workers for shorter periods of time. C) lay off workers as opposed to increasing inventories and/or reducing hours worked for all employees. D) recall previously laid off workers more rapidly.
In the circular flow, savings specifically represents
a. households’ cash hoards. b. households’ bank savings account. c. households’ total accumulated dollars. d. total income minus consumption spending.
The change in saving divided by the change in income is equal to
A. 1 - MPS. B. the MPS. C. the MPC. D. MPC + MPS.